Serenity Has the Following Capital Gains and Losses for the Current

question 17

Multiple Choice

Serenity has the following capital gains and losses for the current year:
$\begin{array}{lr}\text { Short-term capital loss } & \$(8,000) \\\text { Long-term capital gain } & 3,000 \\\text { Collectible gain } & 2,000 \\\text { Collectible loss } & (4,000) \end{array}$
If Serenity is single and has taxable income from other sources of $75,000,what is the impact of her capital gains and losses on her income tax liability?

• A)$ 690 decrease.
• B)$ 750 decrease.
• C)$ 840 decrease.
• D)$1,050 decrease.
• E)$1,960 decrease.

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Definitions:

Steering Knuckle

A component of the steering and suspension system that connects the wheel and tire assembly to the vehicle's front axle.

Caliper Piston Seal

A seal in a brake caliper that prevents fluid leakage and ensures the piston moves correctly to apply the brake pads.

Caliper Piston

A component within a brake caliper system responsible for moving the brake pads against the rotor to slow or stop the vehicle.

Piston Bore

The cylindrical opening within the engine block in which the piston moves up and down during the engine's operation.